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as ACDBEs on a case-by-case basis. Interested operators apply through their state DOT agency. Applying to be an ACDBE operator might not make sense


for kiosk operators with a short-term lease, as the application review process can be lengthy. However, those who plan on operating in an airport for the long-term can find the program to be very worthwhile.


Pricing concerns The majority of travelers automatically assume something is going to be overpriced if it’s purchased at an airport, but in most cases, this is untrue. Westfield, PHL and ATL, in addition to many other airports,


operate street pricing policies. This means that an airport business cannot charge a higher price for a similar item that would be sold in the surrounding metro area. For example, an


Arm Candy – Philadelphia


International Airport T


his specialty handbag and accessory kiosk, which opened in September, is


owned by Shereen Zakkout. It carries Nahui Ollin’s line of handbags, headbands, bracelets and wristlets made out of recycled candy wrappers. Each bag is painstakingly handmade by


Mayan artists and can take up to three days to make. A bag can use as many as four thousand candy wrappers, depending on the size. The price ranges from about $20 for small accessories like wristlets to $375 for a large handbag. Shereen’s husband, Mazen Zakkout, says that the couple


first saw the Nahui Ollin products at a gift show and thought they would be a good idea for a new specialty retail business. Zakkout operates a Go Pretzels cart at PHL, and formerly operated a Jack George’s location, so he and his wife were already familiar with the airport’s specialty leasing program. As for Arm Candy’s typical customer, Zakkout said there


is a wide range of people interested in the products. “We see all ages who enjoy this line, not just young women. People buy them for presents or for themselves, and I’ve seen customers purchase the smaller wristlet bags to use for a cell phone or to put a gift inside.”


airport GAP could not charge $50 for the same sweater that is sold at a GAP location for $40 in a nearby mall. There are some exceptions to these rules. For example,


Latimore says that “if the brand does not exist in the Atlanta metropolitan area, the operator may charge as much as street price plus 10 percent.” Westfield’s policy mandates that prices at the airport


must not exceed the average price of five comparable street price offers in the marketplace, while at PHL, street pricing is regulated by the city of Philadelphia. All PHL retail businesses are audited every quarter for prices and if a brand does not exist at a nearby location, the operator must price its goods based on a similar brand in the area.


Self-service: The future of specialty retail? The prevalence of self-service kiosks is increasing at airports,


SpecialtyRetail.com


Winter 2011 n Specialty Retail Report


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